Why Home BancShares (HOMB) is a Great Dividend Stock Right Now

Company Overview - Home BancShares (HOMB) is a bank holding company headquartered in Conway, with a year-to-date price change of 7.42% [3] - The company currently pays a dividend of $0.19 per share, resulting in a dividend yield of 2.57%, which is higher than the Banks - Southeast industry's yield of 2.28% and the S&P 500's yield of 1.51% [3] Dividend Performance - The annualized dividend of Home BancShares is $0.78, reflecting a 4% increase from the previous year [4] - Over the last 5 years, the company has increased its dividend 4 times year-over-year, averaging an annual increase of 9.70% [4] - The current payout ratio is 39%, indicating that the company paid out 39% of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - Home BancShares is expected to see earnings growth this fiscal year, with the Zacks Consensus Estimate for 2025 at $2.17 per share, representing a year-over-year growth rate of 7.96% [5] Investment Appeal - The company is viewed as an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7]